Since the Greek debt crisis erupted in 2009, a recession
mentality has now become deeply ingrained in the Greek psyche. This
'non-recovery mindset' translates into a crisis of confidence
which, coupled with severe cutbacks in household incomes, directly
affects consumer behavior in very specific ways: consumers are
decreasing their frequency of purchase, spending less, and buying
less. Average basket value (or spend/trip) has been on a steady
decrease, reaching 17.6 euro. There is now an on-going hunt for
value. Consumers are choosing cheaper options - either on promotion
or 'downtrading' to less expensive branded or private label
options. This presents a huge challenge, brands must redefine how
they market their products, extending far beyond advertising, to
understand consumers' desire for greater and more broadly defined
The mindset and behavioral change of Greek consumers has also
brought to the forefront the concept of 'loyalty' (or lack thereof)
to brands and retailers alike. Loyalty is a measure that is less
and less relevant in the FMCG (fast moving consumer goods) world,
and even more so in crisis-stricken Greece as consumers seek value
every day. This puts further pressure on FMCG brands and retailers
alike and forces them to shift the lens to driving penetration and
frequency of purchase.
Top tips for brands looking to learn from the Greek economic
- Do your research. There isn't one recession; there are 11
million recessions, as each individual reacts differently. You're
not marketing to the crisis; you're marketing to people's reaction
to it. Understand people and their needs.
- Shopper marketing is important. Recognising the importance of
reaching consumers when they're filling their baskets is hardly
rocket science, but it is still often overlooked.
- Do not slash marketing spend, instead use the opportunity to
try to change and influence people's behaviour while they are
- Loyalty is out; penetration and frequency are in.
- Continual price undercutting undermines brand equity. It's not
about clever positioning; it's about building trust and
credibility. Provide consumers with something they want and sell it
to them in a way that they will want it from you.
- Innovate to create value and innovate your marketing.
- Low cost is not cheap innovation, it's not low quality and it's
not unbranded. Low cost is a new value proposition.
- Open innovation is an opportunity to innovate and increase
competitive advantage. Look beyond your boundaries for ideas,
partnering with small companies is one obvious source.
- Firms have a tendency to utilise information technologies
primarily for the limited purposes of automation, cost savings and
control. Technology is an enabler to transform your business.
Download the full presentation below.
Source : Kantar TNS